The $2,500 Car
Take a look at part of the reason that petroleum will never be cheap again:
This is Tata Motors "Nano" car. It will seat four adults comfortably and will sell for about $2,500 US in India and other developing countries. A version of this cute car might even make it to the US. This is the 21st century's answer to the VW Bug.
A car this cheap will allow millions in India, China and elsewhere to purchase a car for the first time. As more people demand petroleum the price of that resource will continue to climb - even without the peak oil nightmare.
We as a country have to get serious about flex fuel vehicles, ethanol and biodiesel production, battery R&D, and nuclear power. The quicker we push the alternatives, the less the pain of transition.